Dear Friends,

With strong spill over demand post the festive season in October, the month of November gave extended cheer to the Dealer Community with retails registering a slight growth Year on Year in all segments expect CV’s, where demand still continues to be quite weak.

Agriculture Produce Now Trickling into the markets after the extended Monsoon which Delayed the Crop also Contributed to the Uptick in the Semi Urban and Rural Markets. Along with this, effects of the Positive Measures taken by the Government is also playing its part.

With slight positivity in November, Dealers inventory remained more or less at the same levels in both 2W and PV Categories. Dealers though got an Opportunity to further Reduce their Inventory in CV category by ~5 days.

Once again Appreciating the Efforts of all our OEM’s in regulating Wholesale Supplies, FADA is quite Confident that the Inventory in all the three categories, viz. 2W, PV and CV will soon be in the range of Our recommended and requested Optimum range of 3 weeks.

Going ahead, with our OEM’s further reducing wholesale billing, the Probabilities of Negative Financial Impact further reduces for the Dealer Community as the Indian Auto Industry heads into the Technology Leap of BS-4 to BS-6 in such an uncertain and Dynamic Demand Situation.

Although Better than what the Situation was during Pre-Festivals, Liquidity and Credit Confidence both for Retail Customers as well as Dealers is Still Not Near the Normal levels required for Sustained Growth with the Banking and Finance Industry still at the Cross roads of Business Aggression and Business Caution, despite Strong advocacy of Retail Credit Growth by the Government.

December is the month of Model Change and a month of Attractive Offers. This coupled with Continued Government Focus on Improving the Overall Economic Situation and Especially Automobiles sales which is considered the Barometer of a Country’s Economic Situation, along with the Continued Strong Advocacy by the Government for Aggressive Retail Credit by the BFSI’s, FADA is hopeful of a 3rd month of Positive Retail Growth in December and Further Inventory Reduction, to end the Calendar Year on a Positive Note.

The Honourable Supreme Court in its October 2018 order has clearly specified that BS-4 vehicles cannot be sold or registered from April 1, 2020. FADA, therefore continues to recommend its members to tread with Caution, especially with regards to inventory and Costs during these dynamic times of Fluctuating Consumer Sentiment and the Upcoming BS-6 transition.

FADA will continue to engage with all the stakeholders for a smooth transition into the BS-6 Regime for its members and will explore all Avenues available to it, to ensure Zero Financial loss to its members in such Challenging Times.

By the time, this edition of Journal reaches you, FADA would have filed its impleadment application in Hon’ble Supreme Court in seeking modification in the October’18 order of M C Mehta Matter for safe guarding the BS IV Stocks at dealerships as on March 31, 2020.

Now coming to the activities of your Federation, in the recently concluded 294th Governing Council Meeting held on December 9, 2019 in New Delhi it was decided that FADA members shall continue to advocate reporting of auto retail figures and maintaining stock less than 3 weeks in their interactions with their respective OEMs till this does not become an Industry Practise and FADA will also be pursuing this strongly for early implementation.

I am happy to share that the preparations for the 11th edition of Auto Summit and FADA Awards 2019 presentation ceremony on February 7, 2020 is going full throttle. Request all of you to support your Federation by attending both the events in large numbers. This is also the time for Dealer Community to show its strength in front of all the stakeholders of the Auto Industry. I Look Forward to Personally Welcoming You to this Great Event.

All those who register for Auto Summit before December 31, 2019 can avail of the Early Bird offer and will also get 1 free pass to attend the Auto Expo on February 6, 2020 which has been marked by SIAM as Dealer Day. FADA will be having a lounge in the Expo grounds for its dealer friends attending the Expo on that day to rest and have refreshments.

FADA will be taking its fourth delegation to attend NADA Convention being held in Las Vegas from February 12, 2020 to February 17, 2020. NADA Convention is a huge learning experience and must be attended at least once in every 2-3 years as its workshops, presentations and keynote addresses are an eye opener to the best practises in dealership business. I request all our NEXTGEN to take advantage of this opportunity and send a mail to This email address is being protected from spambots. You need JavaScript enabled to view it. requesting for the registration form and other details about the delegation. As always, we will also organise for dealership visits on the sidelines of the Convention for the benefit of our members.

Going forward, FADA is also working on the Auto Franchisee Act as well as a Model Dealer Agreement ,both of which are long pending demands of our members. I am Happy to share that the first drafts for both are almost ready and will soon be vetted by our legal counsels before we take it up for further process. 

For better understanding of Issues and a Faster Response on those issues of the Governing Council or the Executive Committee, FADA will be announcing the formation of  6 verticals (one each for 2W, 3W, PV, CV ,CE and Tractors) in the First Week of January 2020. These verticals shall cover 5 Zones (North, South, West, East & Central) having a total of 10 members in each vertical (i.e. 2 members from each zone). 

The Vertical Groups will work with Dealers of their Respective Verticals on their issues as well as have a close interaction with OEM’s and Financiers of their Vertical to Jointly Work on any Industry issue pertaining to their Respective  Vertical.

I will Urge all my Active, Knowledgeable and Experienced Dealer Friends  who would be interested to be a part of any of these Vertical Groups to come Forward and Volunteer to be a part of this Initiative. You can Do so by informing Your Regional Director or State Chairperson or sending a mail at This email address is being protected from spambots. You need JavaScript enabled to view it. before 3rd of January, 2020.

We in FADA want more and more dealers to come forward and drive these initiatives so that as a Federation, we are able to address all our concerns inclusively. Small group discussions will help in more bonding amongst dealers and it is here that newer ideas/ approach will surface which will ultimately strengthen FADA.

For any organisation to sustain its grassroots have to be strong and I am hoping for the same in FADA which will help the Dealer Community to brace any eventuality. FADA is the Association of All Of US and it’s Our Duty and also in Our Interest to help Strengthen it.

I will be looking forward to your suggestions which you can send me directly at This email address is being protected from spambots. You need JavaScript enabled to view it. regarding initiatives which you feel FADA must be taking up.

A Merry Christmas to all Our Dealer Friends Celebrating the same.

Wishing all of You, Your Families and Your Dealership Team a Very Happy, Healthy & Prosperous New Year!

Happy Selling for 2020!

Warm regards

Ashish Harsharaj Kale

President, FADA

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